Hal_Al
Level 15

Education

Which state? I suggest you edit you "subject" description, to identify the state, in order to attract users/experts familiar with that state's TurboTax (TT) program.

 

In general, the TT state program may give you a screen that allows you to re-designate the federal non qualified 529 distribution as qualified for the purposes of the state recapture (or change the nonqualified amount to $0). .